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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 10890
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Mother passes away in December of 2015, leaving an inherited

Customer Question

Mother passes away in December of 2015, leaving an inherited IRA to be split among her three children. Oldest sibling was name executor of estate and had all financial information. This sibling was also named to a joint bank of account of deceased mother. Executor failed to notify Vanguard of mother's death, and continue to take monthly automatic withdrawals of $6,000 per month. Both siblings asked specifically about the IRA, however, executor refused to divulge any information. Finally youngest sibling contacted Vanguard in February 2016 about mother passing, which froze the account. We believe that executor was going to continue to take automatic withdrawals as long as they could, never letting sibling know about their share of IRA. Luckily executor only got away with 2 months of collecting on deceased mother IRA. Would like to know if the other two siblings have any recourse in being reimbursed for the $12,000 that was taken by the executor's deceit? Also, could the executor face any legal repercussions for taking this money?
Submitted: 7 months ago.
Category: Finance
Expert:  Lane replied 7 months ago.

Hi,

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Your recourse is the following:

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(1) filing a legal action for embezzlement (a civil action) and breach of fiduciary duty (a civil action).

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Both of thesse stem from his being executor and having a fiduciary duty to fulfill the wishes of the decedent and not notifying the IRA custodian of death.

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(Failure to notify the custodian is a part of the the embezzlement, continuing to take the funds is both embezzlement and breach of his fiduciary duty to beneficiaries of the estate.), and

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(2) Filing a complaint with the authorities for theft by conversion (a crime) ...the criminal version of the common-law intentional tort of embezzlement.

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Both imply legal repurcussions, only number (2) implies CRIMINAL repercussions.

Expert:  Lane replied 7 months ago.

Please let me know if you have any questions at all.

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If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

Otherwise I’m working for no crediting at all here

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Thank you!

Lane

I hold a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.

Expert:  Lane replied 7 months ago.

Hi,

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I’m just checking back in to see how things are going.

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Did my answer help?

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Let me know…

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Thanks,

Lane